Many people think that entrepreneurship is a solution to getting out of poverty and escaping from corporate slavery. Some also consider it as a way to becoming their own boss and having abundant time to spend with their loved ones. Although being an entrepreneur is a noble feat, it’s a risky move that one must carefully weigh up first before jumping in. Before you decide to quit your day job and enter into entrepreneurship, here are 10 things you should know first.
1. Entrepreneurship is not an escape; it’s a greater journey. It’s a tougher world out there. If you’re just entering entrepreneurship because you want to escape from your terrible boss or because you want to have a more flexible working time, I think you’re not yet ready and you’ll only fail when you get there. The entrepreneurial world is a very competitive zone. You’ll be dealing with customers, employees, business partners, and even the government.
2. You have to deal with the burden of tax and red tape in the government . As an employee, your income tax is basically withheld by your employer. You’re only paying income tax and you’re not even the one who’s preparing and filing it to the government. When you become an entrepreneur and you start your business, you won’t only be paying income tax but you’ll also be paying business taxes. You’ll also be the one who will compute and file them, not to mention the hassles you will experience when you register your business and comply with the government’s reportorial requirements.
3. There’s no fixed income in business. Unlike an employee’s salary which is usually given regularly at a fixed amount whether your employer is earning income or suffering a loss, business income is uncertain and you might not earn it, especially at the early stages of business operation. Thus, it is advised that aspiring entrepreneurs should at least save money or have an initial capital to cover the expenses that will be incurred in those stages.
4. To start generating passive income, you have to be active for a long time. A lot of people decide to start entrepreneurship because of the promise of passive income. But what most of them don’t know is that passive income is difficult to earn. To earn passive income, you have to first build a valuable asset that can generate it. It takes time, constant hard work and dedication to build or acquire such assets. Some examples of this kind of assets are real estate properties, high amount of cash in bank deposits, famous trademarks, high-traffic websites, and business goodwill. If you will only relax, then how can you earn this kind of assets?
5. Managing people is harder than you think. If you think your boss is cruel and doesn’t understand your feelings, wait until you become a boss yourself and have your own employees. This is the time when you will realize how tough is it to do the job of a boss, manager or employer. Perhaps imagining yourself just sitting in a manager’s chair is a cool reality. But the truth is, it gives you heavier responsibilities. Only when you become a boss that you will realize why your former boss is always angry at you or at your officemates.
6. Passion can actually bring you failure. If you think that your burning passion will be your best advantage to become a successful entrepreneur, take note that it can also become your weakness. Many entrepreneurs and business people love to personally do some business tasks because they are obsessed in doing them. This practice results to lack of delegation. And without delegation, their productivity decreases. Their target profit is not met. Therefore, to succeed, learn how to delegate important tasks to the right people, even if those tasks are the ones that you love to do personally.
7. Entrepreneurship isn’t about becoming your own boss; it’s about leadership. If you’re planning to start a business just because you just want to become your own boss, think again. Entrepreneurship is not about ruling people, it’s about serving them. It’s not about sitting in the boss’ chair but it’s about getting out of that chair to reach your customers, understand your employees, and even lend a hand to the people in your community. Without leadership skills and without the ability to transform people for betterment, you won’t succeed as an entrepreneur.
8. It requires more dedication. Do you hate your day job because your boss gives you too much tasks that require you to work overtime? Do you see entrepreneurship as a solution to your problem? Well, don’t be quick to jump. There are more things to work when you become an entrepreneur, and they may even require you to work, not only overtime, but also overnight. As an employee, your work responsibility might only be a little part of the whole company. But as a business owner, your obligation is the entire business. No wonder why many entrepreneurs aren’t wasting time and they work like there’s no tomorrow.
9. You need a lot of people who’ll help you to succeed. The early stage of entrepreneurship requires a lot of sacrifice. You will not automatically earn income when you start your business. There would be time that people will look down at you since you don’t have money to share and you’re drowning in debts. That is why you have to be prepared and be humble. See to it that your family and loved ones will understand your journey since it will also affect your responsibility to them, including your financial obligation to them. They must understand what you are going through and give you the support you need to succeed.
10. Being an entrepreneur is being a constant student. Entrepreneurial success doesn’t require a diploma in education. However, it requires constant learning through actual practice and application of your wisdom and experiences in business, entrepreneurship, management, marketing, leadership and other related knowledge. Hence, if you think that you already knew it all and you’re not already keen to learn further, you’re making a terrible mistake.
Aside from what I’ve mentioned above, there are still many other things that you should consider before quitting your day job and entering entrepreneurship. Being an entrepreneur is awesome but you need to be extra careful before jumping in it, especially if there are people who are depending on the income you earn from your day job.
It’s true that entrepreneurs are risk takers. They are even considered skydivers. However, even a skydiver do a lot of preparation and training. He or she also waits for the right timing.